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711 Accounting Standards Interpretation (ASI) 121 Applicability of AS 20 Accounting Standard (AS) 20, Earnings Per Share [Pursuant to the issuance of this Accounting Standards Interpretation, General Clarification (GC) – 1/2002, issued in March 2002 stands withdrawn.] ISSUE 1. Whether companies which are required to give information under Part IV of Schedule VI to the Companies Act, 1956, should calculate and disclose earnings per share in accordance with AS 20. CONSENSUS 2. Every company, which is required to give information under Part IV of Schedule VI to the Companies Act, 1956, should calculate and disclose earnings per share in accordance with AS 20, whether or not its equity shares or potential equity shares are listed on a recognised stock exchange in India. BASIS FOR CONCLUSIONS 3. AS 20, ‘Earnings Per Share’, has come into effect in respect of accounting periods commencing on or after 1-4-2001 and is mandatory in nature, from that date, in respect of enterprises whose equity shares or potential equity shares are listed on a recognised stock exchange in India. AS 20 does not mandate an enterprise, which has neither equity shares nor potential equity shares which are so listed, to calculate and disclose earnings per share, but, if that enterprise discloses earnings per share for complying with the requirements of any statute or otherwise, it should calculate and disclose earnings per share in accordance with AS 20. 4. Part IV of Schedule VI to the Companies Act, 1956, requires, among Published in‘The Chartered Accountant’, March 2004, pp. 952. The authority of this ASI is the same as that of the Accounting Standard to which it relates. The contents of this ASI are intended for the limited purpose of the Accounting Standard to which it relates. ASI is intended to apply only to material items. 1 712 Compendium of Accounting Standards other things, disclosure of earnings per share. Accordingly, every company, which is required to give information under Part IV of Schedule VI to the Companies Act, 1956, should calculate and disclose earnings per share in accordance with AS 20, whether or not its equity shares or potential equity shares are listed on a recognised stock exchange in India.